If you use a poem to describe the current millet, what would you think of? “Spring breeze proud of horseshoe disease”? “The edge of the sword comes from sharpening”? None of these seem to be appropriate, but there is the shadow of Xiaomi everywhere.
From a little-known Internet company to entering the world’s top 500, and then entering the world’s top three smartphones, and being “named and praised” by CCTV, Xiaomi has been so proud of how hard it worked in the past. On November 24th, Xiaomi announced its latest financial report. The beautiful data was overwhelmed, and the dazzling results have doubled the confidence of investors. The official used the words “historical high and far exceeded expectations” to describe this financial report.
Next, let’s take a look at the beauty of Xiaomi’s latest financial report and what key information is revealed behind it.
The old third place finally became the new third place
In the article “Two and a half years ago today, Lei Jun shouted “Xiaomi will return to No. 1 in China in 10 quarters””, Mobile China sorted out the sales data of Xiaomi since 2018. We found that Xiaomi’s performance is “very stable” and has been maintaining its fourth position in the world, even with “Lei Jun” unable to move. With the release of the Q3 financial report in 2020, Xiaomi finally took off the hat of the third runner-up and stood on the podium of the third runner-up, which is tantamount to a milestone for Xiaomi.
According to Q3 data released by Canalys, Xiaomi occupies 13.5% of the global smartphone market, ranking third, second only to Samsung and Huawei, and surpassing its long-standing rival Apple. In the domestic market, Xiaomi’s performance is also better than other brands. It does not mean that it has won the first position, but that Xiaomi is the only one with positive growth among the top five manufacturers, which can be described as rising against the trend.
Global smartphone sales data in Q3 2020 (Source: Canalys)
In terms of specific shipments, Xiaomi’s Q3 global shipments reached 46.6 million units (non-Canalys data), and the growth trend is gratifying, a year-on-year increase of 45.3%. The substantial increase in shipments directly contributed to the revenue of Xiaomi’s mobile phone business. Xiaomi’s Q3 smartphone revenue was 47.6 billion yuan, a year-on-year increase of 47.5%.
Xiaomi’s mobile phone currently has sub-brands such as Xiaomi, Redmi and Meitu. Xiaomi strives to hit the high-end, but Meitu has not done much. Redmi has naturally become the locomotive of Xiaomi’s entire mobile phone business in terms of sales. This can be seen from the official data released by Redmi.
The head of the Redmi brand, Lu Weibing, revealed on Weibo that the global sales of Redmi’s Note series exceeded 140 million units. This is a staggering number, almost equivalent to the annual shipments of a global TOP3 smartphone manufacturer; another The sales of the big number series are also very impressive. On September 30, the global sales of the Redmi 9 series, which was only more than three months old, exceeded 14 million units, easily reaching tens of millions of explosions. Mobile China also reported the latest data from Canalys. Among the top ten best-selling models in the world in the third quarter of 2020, Redmi occupies three places.
Ranking of global smartphone stand-alone sales in Q3 2020 (Source: Canalys)
During the just past Double 11, Redmi also made great achievements: Redmi 9A became the No. 1 cumulative sales of Tmall Android phones; Redmi K30 won the No. 1 cumulative sales of JD Android phones; Redmi K30 Pro won Suning Tesco’s Android phones No. 1 in cumulative single product sales. On November 26th, Redmi will also release three new Note9 series in one go. Judging from the official publicity, it is another product that competitors should be wary of.
Xiaomi’s high-end development has improved
In the previous article, the year-on-year growth value of Xiaomi’s mobile phone business shipments and revenue cannot be ignored. What does it mean that the latter is growing faster than the former? This means that the average price of Xiaomi mobile phones has achieved growth, indicating that the high-end route of Xiaomi mobile phones has improved.
The financial report shows that in the first 10 months of 2020, Xiaomi’s global sales of high-end smartphones exceeded 8 million units. Xiaomi’s definition of “high-end smartphones” is: smartphones priced at 3,000 yuan (USD $429) or more in mainland China and 300 euros or more overseas. . If you don’t have much idea about the sales of 8 million high-end smartphones, then let’s look directly at the average selling price of Xiaomi’s smartphones-Xiaomi’s average selling price in mainland China has increased by 14.7% year-on-year.
As Redmi only sells the K30 Pro series with a price of more than 3,000 yuan (USD $429) , and as we mentioned earlier, Redmi’s sales are mainly concentrated on low-end models such as the Note series. Therefore, the increase in the average price of the entire Xiaomi smartphone is mainly The factor is undoubtedly the success of Xiaomi’s mobile phone high-end strategy.
The “1999 yuan (USD $1174) ” pricing strategy of Xiaomi mobile phones has been deeply rooted in the hearts of the people, but as Xiaomi inherits the burden of “cost-effectiveness” on Redmi, the former has more energy and space for upward exploration. When you open the official website of Xiaomi mobile phone, you will find that “1999 yuan (USD $1174) ” has become the price of Xiaomi Mi 10 Youth Edition, while the previous digital flagship has a starting price of 3799 yuan (USD $543) . The prices of Xiaomi Mi 10 Extreme Commemorative Edition and Mi MIX Alpha are even more straightforward. Force the flagships of brands such as Huawei and OPPO.
From an internal point of view, Xiaomi and Redmi have taken different routes separately, which is conducive to the development of the two brands. The current results also prove that this strategy is effective. However, there are different voices from the outside world. According to industry analysts, Xiaomi’s “people-friendly and low-price” image is deeply rooted in the hearts of the people, and the road to high-end brands may not be easy. Mobile China believes that the development of the brand is not achieved overnight, and the brand image is by no means static. If you want to take the high-end route, technical strength is the number one driving force. In the past two years, we have seen Xiaomi pay more and more attention to R&D and technological innovation. For example, last month, the world’s first 80W wireless flash charging made netizens look at it with admiration. This is typical of Xiaomi’s “technology-driven brand”.
Circuit beyond mobile
In addition to the mobile phone business, Xiaomi’s accumulated AIoT for many years has created a unique track. On this track, there are more opponents than the mobile phone field, but Xiaomi has achieved a comprehensive lead. In the multi-version “House Secret Index” released by Zhai Secret this year, Xiaomi Mijia ecological chain has been in the leading position and did not give opponents too many opportunities. From September 1st to September 14th, Xiaomi released many new products, and the categories are quite rich, such as air purifiers and smart sockets, and the Mijia Ecological Chain Home Secret Index of Xiaomi achieved continuous growth.
Home Secret Ecological Product Index (Picture Source Home Secret)
The data given by Xiaomi also coincides with the secret of the house. The official said that Xiaomi AIoT continues to lead the industry.
Specifically, as of September 30, 2020, excluding mobile phones and laptops, Xiaomi’s AIoT platform connected devices increased by 35.8% year-on-year to 289 million units; users with 5 or more devices connected to the Xiaomi’s AIoT platform grew faster. The number reached 5.6 million while increasing by 59%.
As the main control software center of Xiaomi AIoT, the monthly active users of Mijia App also achieved a year-on-year growth of 34.2% in September, reaching 43.1 million. In addition, the monthly active users of Xiao Ai also increased by 35.5% to 78.4 million.
TV has always been a product line that Xiaomi focuses on outside of mobile phones. Its first product was released in 2013. This year, Xiaomi released two TVs priced as high as 50,000. One is Xiaomi Transparent TV. The other is the 82-inch Extreme Commemorative Edition of Mi TV Master. The “double high” characteristics of technology content and price are enough to prove Xiaomi’s emphasis on TV business.
Xiaomi Transparent TV
According to data from Aoweiyun.com, Xiaomi’s Q3 shipped 3.1 million smart TVs, ranking first in mainland China for seven consecutive quarters and ranking among the top five globally.
It is better to rely on your opponent’s mistakes than to rely on your own efforts
From mobile phones to AIoT, Xiaomi has delivered the best quarterly financial report in history. Canalys analyzed in a previous report that due to the suppression, a certain brand’s mobile phone business was negatively affected, thus leaving a huge market space for its opponents. For brands such as Xiaomi, this is indeed a good time to expand their territory, and Xiaomi’s earnings report has already demonstrated “effectiveness.”
Of course, if you want to survive in the smartphone market, subjective factors will always outweigh objective factors. As mentioned in the previous article, Xiaomi has adopted effective development strategies in core businesses such as mobile phones and AIoT. Xiaomi + Redmi go hand in hand and perform their own duties. The Mijia ecological chain is booming and staying ahead. The most important thing is that Xiaomi’s cultivation of its own strength is also seen in the eyes of everyone. The world premiere of various technologies and the appearance of various cutting-edge technology products refreshed consumers’ stereotypes of the Xiaomi brand.
With only one month left in 2020, Xiaomi’s performance next year is even more worth looking forward to.